Penalties and Late Interest Charges

The FDI Act
provides for a penalty for an institution’s failure to make
an assessment payment on the due date. An institution that
fails to timely pay
an assessment of more than $10,000.00 is subject to a penalty
of not more than 1 percent of the late assessment amount due
for each
day that the assessment is unpaid. An institution that
fails to timely pay an assessment of $10,000.00 or less, is
subject to a penalty
of not more than $100.00 per day for each day that the
assessment is unpaid. Penalties are computed from the day after
the original
payment settlement date through and including the
date of final payment settlement. For more information, please
see FIL-43-2007.

Daily interest (to compensate for the time value of money) is paid
on overpayments and charged on underpayments of assessments. The
overpayment or underpayment amount plus accrued interest will appear
in the adjustment section of an upcoming quarterly invoice for the
applicable institution. The interest rate charged for a quarter
is the coupon equivalent yield of the average discount rate set
on the 3-month Treasury bill at the last auction held by the United
States Treasury Department during the preceding quarter. For more
information, please see 12
CFR part 327.7.